Castor seed futures on NCDEX ended high during the end of last week. Most active April contracts rallied higher to end the week at Rs. 4561 per quintal as against the previous week’s closing of Rs. 4280 per quintal.
A fall in supply across major markets and rise in demand from domestic traders led to a rally in prices. Domestic crushers increased the purchase in anticipation of rise in export demand for castor oil and castor meal.
Castorseed prices rose by Rs 35 to Rs 4,075 per quintal in futures trading last week as participants created positions amid a firm trend at the physical markets.
Also, delivery in current month delivery went up by Rs 33, or 0.83 per cent, to Rs 4,026 per quintal, in an open interest of 10,940 lots.
Multi Commodity Exchange of India has launched a futures contract in castor seed after receiving approval from Securities and Exchange Board of India. With this launch, MCX has added another contract to its agri-commodities products suite, in the oil and oilseeds complex.
The exchange has currently launched February, March, April and May 2017 contracts in castor seed, with 10 MT (metric tonnes) as the trading unit and Deesa (Gujarat) as the basis centre.
Castor seeds futures, a leader in the segment and suspended by the National Commodity and Derivatives Exchange (NCDEX), are likely to be relaunched again. The market regulator, the Securities and Exchange Board of India (Sebi), is considering a proposal on this and is likely to announce its decision soon.
Multi Commodity Exchange (MCX) has also applied for castor seed futures and is awaiting Sebi’s approval.
Castor seed prices increased due to increased demand from the crushers on the spot, while there was a decrease on futures as traders booked the profit at higher level.
The export demand for castor oil had increased the demand from crushers. The price of the castor oil was up Rs. 5 to Rs. 830/10 kg.
Italian synthetic fibre business Fulgar has launched a new high performance nylon fibre made from biopolymer extracted from castor oil seed.
The fibre, Evo, is suitable for all applications, particularly, for the sports sector as it is ultra-light, stretchy and easily breathable.
Sufficient supply along with limited demand reduced the castor seed price in the spot market. Castor seed futures traded lower on higher supply as well as strong production estimates.
The castor seed prices declined Rs. 5 to Rs. 790 – 800 per 20 kg in Gujarat. On the Rajkot Commodity Exchange, castor December contract lost Rs. 21 to Rs. 4,122 per quintal. RCX spot castor declined Rs. 25 to Rs. 3,925 per quintal.
Castor seed prices increased by Rs. 54 to Rs. 4,269/quintal due to firming trend at the spot market. At NCDEX, castor seed delivery for November contracts increased by 1.28% to Rs 4,269/quintal.
Also, commodity for delivery in October contracts was trading higher by 0.73% at Rs. 4155/quintal.
Castor seed futures traded marginally higher on NCDEX due to rising demand from paint industries. Further, restricted arrivals from the major producing belts also influenced castor seed prices’ uptrend.
The contract for October delivery was trading at Rs 4130 .00, while the contract for November delivery was trading at Rs 4245.00.
Castor seed futures traded marginally up on NCDEX due to increased holdings by the investors and rising demand from consuming industries at the spot market.
The contract for October delivery was trading at Rs 4190 .00 and the contract for November delivery was trading at Rs 4262.00.